Why use a real estate broker?

When investing in real estate , buying a property and the method of financing are essential steps. To acquire or sell a home, or obtain a mortgage , using brokers is one of the best solutions. Note that a broker is an independent intermediary between the bank and its client (the investor), the seller and the buyer. This professional plays an important role and will offer you valuable advice for the realization of your project. He takes care of the various negotiations necessary with lenders (banks) so that they validate your loan. The brokerage system is very effective and increasingly common on the real estate market. Thus, using a broker promotes the success of your transaction while saving you time and money and allowing you to obtain more advantageous conditions.

Interest on the mortgage loan

When looking for financing for a real estate investment , using a broker brings you many advantages. This makes it easier to obtain your loan with sufficiently low interest percentages.

Get better rates with more advantageous conditions

Using a broker not only allows you to benefit from lower rates, but also to obtain more advantageous conditions. Their intervention can contribute to significant and considerable reductions. For example, imagine that you want to take out a 20-year loan with an interest rate of 1.60%, which corresponds to a request considered excellent. A broker can manage to negotiate the application of a rate of 1.10%, which is usually reserved for the best customers. This is due to their ability to bring a large volume of files to the bank.

In addition, brokers provide the bank with advantages relating to the diversification of their clientele, which therefore encourages them to offer them better deals. With complete and concrete files, lending institutions can grant you your mortgage with a highly negotiated rate.

Furthermore, these conditions do not only apply to the loan itself. They may in fact concern a reduction in the rate of insurance linked to the loan (borrower insurance, for example). Also, the brokerage process impacts the free banking product, the free application fees, the cancellation of early repayment compensation, etc.

Saving time on the completion of your project

Applying for a mortgage loan is a complex and lengthy step. This is the case when you want to get the best possible rate. The broker helps you build a strong file, choose the right banks, compare their offers and play the competition. Usually, these steps last several months. To save valuable time, using a broker is the solution.

A trusted partner with strong skills, the real estate broker will help you facilitate your search for financing. This intermediary will take care of establishing your files and will personally handle negotiations with the bank. As a result, you will have the time necessary to prepare the acquisition of your property and to properly plan your investment.

Save your money

Using a real estate broker helps you save money by minimizing your expenses related to establishing files and comparing rates. Moreover, your real estate investment project represents a large sum of money and you must manage your capital well. In addition to establishing the documents for your application, this professional takes care of bank approaches by indicating to you the establishments offering the most interesting offers. As a result, you will not need to travel or spend money to complete your transaction.

In most cases, a broker charges a fee to be paid as soon as the loan is made. However, the amount saved by negotiating the rate is often much higher than the brokerage fee .

Benefit from his help and advice at an affordable price

The role of brokers focuses on supporting their clients in all stages of their credit application. They help and advise you on the establishment of your files, the release of funds at the notary and the negotiations of the most advantageous conditions. To this end, the broker's services require fees that will be clearly indicated in his mandate. They can be paid in two ways depending on your agreements and the complexity of your documents. Note that from the time of your contract, you must sign a mandate allowing the broker (agent) to present himself in your profile to the banks.

Indeed, brokerage fees can be included in a price range of between €950 and €1,500 depending on the agents and the difficulty of your procedures. In addition, a second option is possible for the remuneration of a broker. For this, his costs will be deducted from your credit, i.e. 1 to 2% of the amount borrowed. In any case, this sum is largely offset by the time saved and the savings made by using this specialist.

To benefit from the advantage of credit redemption

This method is also applicable if you are considering buying back your old credits. This involves renegotiating your existing loans in order to benefit from lower rates. When you apply, the broker is able to negotiate a reduction in the interest percentage with your bank. He can also indicate another brand that offers a lower rate so that you can buy back your bank credit. As part of the implementation and regulation of this operation, this professional assists his client in particular on:

• Analysis of your application before submitting it to the loan organization;
• Putting together your credit redemption file;
• Negotiation with the financial institution;
• Obtaining the funds for your credit redemption. 

This way, you will benefit from your old loan in addition to advantageous conditions on the reduction of current bank interest percentages.

Interest on the acquisition or sale of real estate

In addition to real estate loans, brokers also play the role of intermediary between seller and buyer. Their support is important in the purchase or sale of a house or in making an investment.

Ensure the approaches and principles of negotiating a purchase offer

Sales negotiations and finding homes that match your profile are sometimes difficult on the real estate market . With their experience and skills, the real estate broker can make your task easier.

This expert can access exclusive information that allows him to find the right deals that meet your needs. Depending on your budget and expectations, he can show you a range of choices of homes for sale. As a result, you will save even more time, because this specialist takes care of all the meetings with the owners. His knowledge of the real estate sector allows him to ask the right questions and sniff out a good deal or a scam. He also knows how to identify possible repairs to be made to the home that can lower the purchase price.

In addition, the broker can help you with the regulations of your real estate acquisition. He provides you with the files necessary for the transfer of your acquired property and the completion of your renovation. Please note that, when purchasing real estate, you are exempt from brokerage fees. These remain the responsibility of the seller.

Ensure the sale of your real estate

Do you want to sell your house or apartment? Using a broker remains the best option in order to find potential buyers and to regulate your sales documents. With their support, you will save considerable time. As part of a real estate investment, this allows you to benefit from a significant added value.

Are you having problems with the various administrative documents governing the sale of your home? Why not call on a broker? The latter will assist you in creating your contract and your final deed of sale. Also, he will be responsible for publishing your offer on his website in order to make it visible to everyone. As for the fees, they are around 4% to 8% of the sale price.

Guarantee the legal aspect of your operation

Sometimes, the sale or acquisition of real estate is the subject of an error or a scam. Legal protection insurance against unfortunate situations caused by malicious people is another advantage that you can benefit from by doing business with a broker. During your transaction, a dispute may arise that gives rise to proceedings before the court. Faced with this stressful situation, the support of this specialist allows you to:

• To be represented or defended against such proceedings;
• To be protected in the event of a claim made by a third party against you;
• To be supported until damages are repaired, amicably or in court. 

In summary, in order to succeed in your real estate investment, contracting the services of a broker is a more reassuring and reassuring way.